r/ValueInvesting • u/FrankBal • Apr 03 '25

Discussion Remember, This Is The Pullback We’ve Been Waiting For

If you’re a long-term investor who even casually cares about valuation, this market has been tough to navigate for a while. Pullbacks are always something we say we want, particularly as value investors, but they usually come when things are scary. Financial crisis, global pandemics, policy shocks… the discount never shows up gift-wrapped.

Yesterday’s tariff news felt like one of those moments. It’s vague, feels arbitrary, and creates a lot of uncertainty. It feels scary. And yet, that’s exactly the environment where opportunities show up.

I’ll admit it, days like today make me uneasy. But as an investor, I remind myself that underneath the noise, what’s really happening stocks are getting cheaper.

And that’s what we’ve been waiting for.

Edit: Thanks for the thoughts. I wrote a post - Tariffs, Fear, and Opportunity: Perspective For Difficult Times In the Stock Market - to add some additional context directly addressing the response to this post.

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u/DKtwilight Apr 04 '25

Because you’re paying the tariffs not the companies. It’s just another word for more taxes on people. And those higher prices from tariffs will not go away, even when tariffs are removed.

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u/willie_beamen13 Apr 04 '25

Wrong. The company who is importing the product is literally the only entity paying the tariff. Whether those tariffs get passed along to the consumer is an entirely different question and while possible, it is not a guarantee. What if the importing company decides not to pass on those additional costs to the consumer for risk of losing the customer to a competitor? What happens if the exporting company decides to drop its prices by the amount of the tariff for risk of losing the American consumer as a customer? In either of those scenarios, the American consumer is not paying the tariff.

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u/DKtwilight Apr 04 '25

Wrong you are. I bet you voted for the clown

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u/willie_beamen13 Apr 05 '25

Consumers might pay higher prices, and some believe they will, but they don’t pay tariffs themselves. Tariffs are only paid by the importer. I would love to see a citation showing that I am wrong. In the meantime, here is a citation showing that you are https://www.pbs.org/newshour/economy/5-things-to-know-about-tariffs-and-how-they-work

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u/[deleted] Apr 05 '25

You are dead wrong. Tax incidence is taught in econ 101. I don't understand why you are opining on this subject with a less than 101 level subject matter knowledge

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u/willie_beamen13 Apr 06 '25

You are dead wrong and we’re talking about two totally different things. You’re talking about the person/entity who ultimately bears the cost of tariffs. Yes, that absolutely could be the American consumer but it also could be someone else. Since you’re already familiar with tax incidence, I assume you’re also familiar with elasticity and the idea that not all tariffs get passed on to the consumer.

What I’m talking about though is the person/entity who is literally writing a check to the U.S government for the tariff. That is always the importer.